hi I have a short sale in hand FMV 280 the owner is back 2 months payments soon to be 3 payments first mortgage is at 210 second is at about 54 its about to go into foreclosure owner came to me for help now i can go and short this second to about 5-6 thats a good deal already 216 for a 280 fmv its a beautifull home with no repairs needed maybe cosmetic no more than 1-2k now is that LEGAL in illinois?? I heard you cant go any lower than the 82% mark for buying preforeclosures let me know someone please
i don’t think there’s anything illegal about it - check with an attorney - what would be illegal. if the bank accepts your offer, everything is negotiable.
okay thats great because I heard otherwise I hope your right this is my first short sale I am going to go through with I have a seller who is very motivated and is ready to sign over the deed and walk away with nothing but just get over this property so I will be helping a great family out and making money in the process and a pretty penny too
If memory serves me correctly. That particular law only applies if you are allowing the homeowner to stay in the home with the provision that they will be able to buy it back from you in the future.
Do a google search for illinois mortgage fraud rescue act. This law should not affect business. On this site it is always preached to not let the homeowner stay. If they defaulted on the lender, they’ll default on you.
You are referring to Illinois SB 2349.
This states you can not state that you are credit repair service, charge up front fees, or buy a home for anything less than 82% of value if you are leasing the home back to the seller.
Now I still suggest you read the law thoroughly just to get an understanding. I personally have talked to several lawmakers that voted for the bill, and none of them could really explain it to me correctly.
The other issue is, who determines the value of the home. You have to determine value to find 82% of that.
Again, steer clear of leaving the seller in the property and you are ok. I personally never understood this tactic anyway, I mean if they can’t afford a mortgage, why would you think they could afford your rent?
The law or legal issue in question (foreclosure rescue) pertains to what are known as “sale-leaseback” transactions. Avoid leaving current seller in home with a lease and\or option to buy back the property at some time in the future. As far as I know, “subj 2” or short sale transactions do not apply to current legislation. Mark.